Gold prices (XAU/USD) saw a slight increase during Monday’s Asian trading session but struggled to gain significant bullish momentum, hovering just below the $2,500 psychological level. The release of a mixed US jobs report has dampened expectations for a substantial 50 basis point interest rate cut by the Federal Reserve, leading to a moderate rise in US Treasury bond yields. This uptick in yields has bolstered the US Dollar (USD) following a bounce from a one-week low on Friday, creating headwinds for the non-yielding gold.
In addition, the lackluster US employment data has heightened concerns about a potential economic slowdown in the United States. The ongoing deadlock in ceasefire negotiations between Israel and Hamas has also contributed to a more cautious investor sentiment, supporting gold as a safe-haven asset.
Traders should remain cautious, as the recent consolidation in gold prices suggests a need for careful consideration before making any near-term trading decisions.
